Equity crowdfunding – a way to raise capital by offering shares (or debt) through online portals. Those who buy shares become shareholders of the companies that offer them. The Philippine rules on equity crowdfunding went live in 2019. This differs the crowdfunding activities of popular sites like Kickstarter and IndieGoGo as no share ownership are offered by startups raising capital through these portals but only goods and services.
Drag along – contractual rights given to shareholders (usually those owning a majority of the shares) to force others (usually minority shareholders) to sell their shares should the majority shareholders receive an offer to buy all or substantially all of the shares in the company. This effectively prevents minority shareholders from blocking the sale.
Tag along - the flip side of drag along rights, this contractual right gives minority shareholders the right to force buyers of other shares (usually those held by majority shareholders) to also buy their shares. This gives minority shareholders the chance to benefit from lucrative offers given to majority shareholders (share the love).
Pre-emptive rights – contractual rights given to current shareholders to buy new shares to be issued by the company in proportion to their current shareholding. If exercised, this effectively maintains the status quo - current shareholders maintain the percentage share ownership in the company they now enjoy.
